Everything Else Held Constant,in the Market for Reserves,when the Supply

question 52

Multiple Choice

Everything else held constant,in the market for reserves,when the supply for federal funds intersects the reserve demand curve along the horizontal section of the demand curve,lowering the interest rate paid on excess reserves

• A)increases the federal funds rate.
• B)lowers the federal funds rate.
• C)has no effect on the federal funds rate.
• D)has an indeterminate effect of the federal funds rate.

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